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What is Single Invoice Factoring?

Single invoice factoring is a method used by both businesses to increase cash flow by tapping into the funds that lie in unpaid invoices.

As the name suggests, It differs from regular invoice factoring in that it only uses one invoice as the security against which a loan or payment is made. Single invoice factoring is also known as ‘spot factoring’.

Unlike regular factoring this form of finance offers businesses the option to be completely confidential – so creditors and clients don’t worry and a company’s reputation remains strong. However, because spot factoring represents a ‘one off’ method of financing without monthly fees and the further promise of future lending, the up-front costs can be larger than standard factoring.

What are the benefits of single invoice factoring?

• Flexibility – it’s not cost effective to source more cash than you need from invoice factoring. Using only one invoice allows you the flexibility to generate exact amounts of cash and maximise your profits.
• No contracts – traditional invoice factoring can involve annual agreements with financiers. Generating from a single invoice means there’s no long-term commitment and ultimate flexibility.
• Transparent costs – when handled in bulk, the costs and finances involved in invoice factoring can be muddied somewhat. Selling invoices individually ensures that the costs involved are completely transparent.
• No monthly fees – you only pay for single invoice factoring when you need it.
• Speed – Thanks to its simplicity, single invoice factoring can release funds much quicker than bulk agreements.

Who uses single invoice factoring?

Cash flow problems can happen to anyone, and so in truth spot factoring is used by businesses of all shapes and sizes. However, it’s particularly popular with entrepreneurs and businesses that trade seasonally and make the bulk of their revenue during a few months every year.

It’s also a great option for the businesses with a small, lucrative client list. When a business is relying on one or two high-value invoices to be paid in to balance the books, it’s common for cash flow problems to arise. Tapping into single invoice factoring alleviates those problems.

Talk to Pure Commercial Finance about spot factoring today

At Pure Commercial Finance, we specialise in sourcing flexible, cost-effective invoice finance that suits your business. For more information about our single invoice factoring, talk to us today – request a call back or email info@purecommercialfinance.co.uk.

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Pure Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA).
Our financial services register number is 744421 which can be viewed on the register at www.fca.org.uk/register or by contacting the FCA.
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